Friday, October 24, 2014

Why can't I buy a solar panel somewhere else in the US and get a credit for the electricity from it?

Seattle City Light has a clever project where, instead of installing solar panels on your house where they might be obscured by trees or buildings, you can buy into a solar panel installation on top of a building in a more efficient location and get a credit for the electricity generated on your electric bill.

Why stop there? Why can't I buy a solar panel in a very different location and get the electricity from it?

This doesn't require shipping the actual electricity to your home. Instead, you fund an installation of solar panels on top of a building in an area of the US with high solar energy efficiency, then get a credit for that electricity on your monthly electricity bill.

I suppose, at some boring financing level, this starts to resemble a corporate bond, with an initial payment yielding a stream of payments over time, but people wouldn't see it that way. The attraction would be installing solar panels and getting a credit on your energy bill without installing solar panels on your own home. Perhaps the firm arranging the installations and working out the deals with local utilities could be treating the entire thing as the equivalent of marketing bonds to people who like solar energy, but the attraction to people is that visceral appeal of a near $0 electricity bill they see every month from the solar panels they feel like they own and installed.

Even with the overhead pulled out by the company selling this and arranging deals with local utilities so this all appears on your local electricity bill, the credit on your electricity bill still should be much higher than you could possibly get installing panels on your own home with all its obstructions and cloudy weather. Solar generation in an ideal location in the US easily can generate twice as much power as what is available locally, on your rooftop.

So, why hasn't someone done this? Why can't I buy solar panels and have them installed not on my own home, but in some much better spot?